Learning to Save

I thought about the responsibilities of parenting earlier today while listening to the radio. Apparently today is Teach Your Children to Save Day, a time when parents are encouraged to teach their children about saving money.

One lady told of her strict guidelines. Her children receive a dollar a week for every year of their age. So a seven year old would get seven dollars a week. From that money, she requires the child to put 10 percent back as tithes, another 30 percent away for college, and 40 percent is allocated for savings. That leaves the child with 20 percent “for fun.” What this means, though, is that the child only gets $1.40 per week to spend at will.

It is an interesting idea, but I am not capable of being that strict with my own funds. If I only had 20 percent of my paycheck left each week, I wouldn’t even have enough money to go to the grocery store, let alone pay bills.

I will agree, though, that teaching one’s child to save is part of that responsibility as a parent. Money cannot be simply thrown away or spent on useless items. It should be invested into something.

My elder son, Creed, is seven. Last year, he spent nine months saving money to buy himself a Nintendo DS. I gave him plenty of opportunities to earn money, but it was up to him to decide if he wanted to earn it and whether or not he would save it back for the video game player he wanted. It was a very good lesson for him. He didn’t always want to make his bed or put away his clothes. On those days, he didn’t receive any financial reward, just as most adults don’t when they decide they don’t want to go to work. And, sometimes, he decided to buy something with his money – like a toy he only played with a few times. Eventually, he began to realize that saving for something bigger and better that definitely had a longer life expectancy might be the right choice.

When the day came for him to buy his DS, I fronted extra cash to get him a game to play in it. He handed the money to the cashier himself and told the cashier just how long he had been saving. For that reason, he takes better care of that game system than what he would if he had not earned it.

Even his younger brother realizes the effort. For that reason, my four-year-old son is now saving for a DS. He doesn’t plan on waiting until he is seven to get it.

I decided to try this approach when thinking about the times that I earned money to make purchases in my younger years. I once saved enough pennies to buy myself a garment bag for traveling. On another occasion, I saved every bit of money possible to buy myself an expensive pair of tennis shoes. I soon realized the shoes weren’t worth the $130 it cost to have them as my own. I never again spent that much money on shoes.

As a society, we seem to believe that debt is okay and not saving is the norm. It isn’t the way to a successful future, though. Nor is it a way to be a good steward of money.

Recently, I was encouraged by Creed’s ability to use money properly. I guess the DS lesson continues to stick with him.
I sent Creed to the circus with $20 last week. He asked for the money so he could buy himself something. I granted his wish as a result of good behavior (the whole rewards system). I actually thought to myself after he had gone to school that I hoped a lot of the merchandise wasn’t over the $20 limit Creed had. When I picked him up that evening, he confessed he didn’t buy anything for his brother. I told him that was fine, as I didn’t even expect him to do so. He said he used his money on someone else instead. I questioned to find out more. He said he bought a tiger cub-shaped cup with ice cream in it for $10. When he realized someone else watching the circus only had a nickel, he bought that young friend the same thing he had. After all, he told me, 10 plus 10 equals 20. He shared half of what he was given with someone else. I was extremely happy with him.

I may not be strict in forcing him to save for college or putting 40 percent of his money into a savings account, but the objective of teaching him to be a good steward of money is definitely a productive one.